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UPDATE 6-As fuel pumps remain dry, UK's Johnson says plans in place for supply chains

Tue, 28th Sep 2021 07:52

* Johnson says fuel situation is improving

* Army tanker drivers to be deployed if needed

* Retailers caution about Christmas supply

* Brexit, pandemic have contributed to problem
(Recasts with Johnson comments)

By Michael Holden, Kylie MacLellan and Costas Pitas

LONDON, Sept 28 (Reuters) - British Prime Minister Boris
Johnson sought on Wednesday to quell public fears as
panic-buying left fuel pumps dry across major cities, saying the
government was making preparations to ensure supply chains were
ready for the run-up to Christmas.

Johnson said the situation at gas stations was improving,
though in many regions, hundreds of forecourts remained closed
and motorists spent hours hunting for fuel or sat snarled in
queues waiting to fill their tanks.

"We now are starting to see the situation improve. We are
hearing from industry that supplies are coming back onto the
forecourt in the normal way and I would just really urge
everybody to go about their business in the normal way," Johnson
said in televised remarks.

Johnson's comments were his first since the fuel supply
problems began at the end of last week when oil companies
reported difficulty transporting petrol and diesel from
refineries to filling stations.

Opposition Labour leader Keir Starmer accused him and the
government of lurching from "crisis to crisis".

There have been growing calls for doctors, nurses and other
essential workers to be given priority in filling their cars to
keep hospitals and social care services running, but Johnson
said it would be better if "we stabilise it in the normal
way".

SUPPLY CHAINS

An air of chaos has gripped Britain, the world's
fifth-largest economy, in recent weeks as a shortage of truck
drivers strained supply chains and a spike in European wholesale
natural gas prices tipped energy companies into bankruptcy.

The post-Brexit dearth of truckers has been exacerbated by a
halt to truck-driving-licence testing during COVID lockdowns as
well as people leaving the haulage industry.

It has sown chaos through supply chains and raised the
spectre of widespread shortages, price increases ahead of
Christmas, and a prolonged rise in inflation.

"What we want to do is make sure that we have all the
preparations necessary to get through until Christmas and
beyond, not just in supplying the petrol stations but all parts
of our supply chain," Johnson said.

To tackle the shortage of drivers, the government has been
forced to bring in measures it had previously ruled out, such as
issuing temporary visas to 5,000 foreign drivers.

It has also put a limited number of military tanker drivers
on standby to be deployed to deliver fuel if necessary.

Hauliers, petrol stations and retailers say there are no
quick fixes as the shortfall of truck drivers - estimated at
about 100,000 - is so acute, and because transporting fuel
demands additional training and licensing.

Ministers want businesses to pay more and offer truckers
better conditions, rather than count on cheap foreign labour.

"What I don't think people in this country want to do is fix
all our problems with uncontrolled immigration again," Johnson
said. "We tried that for a long time... and in the end people
could see it was leading to a low-wage, low-skill approach."

'CRAZY'

Industry groups said the worst of the fuel shortages seemed
to be in London, the southeast and other English cities. Fights
have broken out at some forecourts as drivers jostled for fuel
and pictures on social media showed some people filling up old
water bottles with fuel.

"I can't believe it - it's crazy," said David Scade, a
33-year-old delivery driver who drove for hours searching for
fuel in London. "They keep saying there is no shortage but I
suppose everyone is panicking now."

The Petrol Retailers Association (PRA), which represents
independent fuel retailers who account for 65% of all the 8,380
UK forecourts, said there were signs the crisis was abating.

"We have conducted a survey of our members this morning and
only 37% of forecourts have reported being out of fuel today,"
said Gordon Balmer, executive director of the PRA, which had
previously reported up to 90% of stations had problems.

"With regular restocks taking place, this percentage is
likely to improve further over the next 24 hours."

Retailers, truck drivers and logistics companies have warned
that prices for everything from energy to Christmas gifts will
have to rise because of the shortage of truck drivers.

The British Retail Consortium (BRC) urged the government to
broaden the size and scope of its temporary visa scheme.

"It will take many months before there are enough new
British drivers to cover the shortfall," said Andrew Opie,
director of food and sustainability at the BRC.

European drivers have also indicated they would not take up
the visa offer, which only lasts until Dec. 24. Some Polish
hauliers said the offer was laughable and the German freight
industry said drivers who left after Brexit would not go back.
(Additional reporting by Ben Makori, James Davey, and Joice
Alves in London and Rene Wagner in Berlin; Writing by Michael
Holden and Guy Faulconbridge; editing by Alistair Bell, Philippa
Fletcher, Nick Macfie and Gareth Jones)

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